Doherty Corporation Had Net Income of $30,000,net Sales of $1,000,000,and

question 115

Multiple Choice

Doherty Corporation had net income of $30,000,net sales of $1,000,000,and average total assets of $500,000.Its return on total assets is equal to:

• A)3%
• B)200%
• C)6%
• D)17%
• E)1.5%

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Definitions:

Property, Plant, and Equipment

Tangible long-term assets owned by a business, used in the production or supply of goods and services, such as buildings, machinery, and vehicles.

Accumulated Depreciation

It represents the total amount of depreciation expense that has been recorded for an asset over its life.

Intangible Assets

Non-physical assets owned by a business, such as patents, trademarks, and copyrights.

Physical Substance

The tangible aspect of assets, implying that they have a real, palpable presence.